JPMorgan Chase & Co. (JPM) will delay foreclosing on some properties in order to review affidavits that were signed by employees who didn't verify related files, making the company at least the second bank in recent weeks to suspend the foreclosure process on properties in order to better examine documents.

JPMorgan Chase employees in some cases didn't verify affidavits that identify the original mortgage-note holder and signed files reviewed by other employees, according to company spokesman Tom Kelly. He added that the affidavits' loan information is accurate and that the documents were prepared by "appropriate personnel."

The bank is the second in recent weeks to suspend foreclosures on some properties to review affadavits. Ally Bank subsidiary GMAC Mortgage is also halting some foreclosures after it was disclosed that affidavits were signed by people who didn't personally know if the information in the affidavits were true, and at times, didn't have the affadavits notarized.

Bloomberg News reported earlier this week that a JPMorgan Chase employee testified in a deposition that she was one of eight managers who combined to sign some 18,000 documents a month.

The JPMorgan review will take a few weeks, and the company has asked judges not to rule on homeowners until the review is complete, according to Kelly.


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Connie

Been trying to get a loan mod. since Jan. 1, 2010. Turned down 6 times. Making home affordable said I was entitled to this modification as I had lost income. I wrote to everyone I could think of and finally got a call from the head ceo's assistant. So we put all the info in again, trying for round 7. Hang in there people. Maybe we can sue all of them if they keep screwing us over. Whatever you do don't give up as that is what they want. Also, I was told by a lender that it is better to file bankruptcy than foreclosure. God Bless.

October 02 2010 at 5:56 PM Report abuse rate up rate down Reply
Kristy

I don't think I would buy a home now for anything. All of these banks are sneaky and greedy. I know and agree if you don't pay, they have to do what is necessary but in some cases they have just swiped people's homes in error and now those people are forking out money to lawyers to get back a home they never should have lost in the first place. Stop all these outrageous pay increases and bonuses and let them really "work" for a living. It's ridiculous.

October 01 2010 at 10:01 PM Report abuse rate up rate down Reply
stubit586

When one side in a judicial dispute is shown to have knowingly provided the court with false documents as "evidence" that side usually loses. In their greedy rush to forclose on as many properties as possible, the banks may have given thousands of homeowners a potentially free house. The bank loses will be monumental but I'm confident the bonuses will keep flowing along.

September 30 2010 at 3:42 AM Report abuse +1 rate up rate down Reply